How much is mortgage interest relief?

One of the questions we are often asked by first time buyers relates to how much mortgage interest relief is. Since January 2002, mortgage tax relief on home mortgage interest is now given at source. It is commonly referred to as Tax Relief at Source (TRS). It can be claimed in respect of qualifying loans secured on the deeds of your main residence i.e. a new mortgage, a top up loan, a home improvement loan, a re-mortgage or a consolidation of existing borrowings.

It is not necessary to claim mortgage interest relief in the annual tax return. The actual relief you receive is dependent on the upper limit allowable. A single first time buyer is entitled to an upper limit of €5000 while a married or widowed first time buyer has an entitlement of €10000. Relief is given at the standard rate of 20%. Therefore, a single first time buyer with €5000 qualifying interest will receive €1000 tax relief for the year.